Deck 2: Corporate Image and Brand Management

Question 1

The most important component of a corporate image is likely to be customer perceptions of how a firm deals with them.

Answer 1

True

Question 2

Brand image is especially valuable to a company that is expanding internationally because it reduces risk and uncertainty on the part of the buyer.

Answer 2

True

Question 3

From the consumer's perspective, corporate image provides psychological reinforcement and social acceptance of a purchasing decision.

Answer 3

True

Question 4

While rejuvenating an image will help a firm sell more products, it will seldom attract new customers.

Question 5

A positive corporate image can reduce search time when a consumer is making a buying decision.

Question 6

A well-developed, favorable image creates loyal customers who might generate positive word-of-mouth endorsements about the company and its products.

Question 7

While a corporation's image plays a key role in marketing to consumers, it is not significant when selling to other businesses.

Question 8

Perceptions of a corporation's image are based solely on price and quality.

Question 9

Effective marketing communications are based on a clearly defined corporate image.

Question 10

What a firm's employees believe about the company's image is far more important than what consumers think.

Question 11

A strong corporate image cannot affect the price a company can charge for its products.

Question 12

A firm's image is based on the feeling consumers and businesses have about the overall organization and its individual brands.

Question 13

Applebee's rebuilt its brand by acquiring IHOP.

Question 14

In each industry, the right image is one that sends a clear message about the unique nature of an organization and its products.

Question 15

A corporate image contains both visible and intangible elements.

Question 16

Rejuvenating a firm's image can be difficult and takes time and effort.

Question 17

The image a firm tries to project should accurately portray the firm and coincide with the goods and services being offered.

Question 18

Normally, an image can be rejuvenated with an effective advertising campaign.

Question 19

An organizational policy to actively recruit minority employees would be an element of a company's image.

Question 20

A corporation's image has little or no effect on other business activities, such as recruiting employees.

Question 21

Federal Express is an example of a conceptual corporate name seeking to suggest the idea of express delivery.

Question 22

Nike's "Swoosh." logo did not have a natural relationship with the company's products, making it necessary to spend considerable advertising dollars to embed the logo in consumers' minds.

Question 23

An overt corporate name reveals what the company does.

Question 24

A flanker brand is the use of a new brand name to identify a product marketed with another company.

Question 25

The key to successfully rejuvenating a corporation's image is to remain consistent with the previous image while adding new elements.

Question 26

It is impossible to change a corporation's image.

Question 27

Quality logos and corporate names should meet four tests. They should 1) be easily recognizable, 2) elicit a consensual meaning among those in the firm's target market, 3) be familiar, and 4) evoke positive feelings.

Question 28

Changing a corporation's image requires both internal programs and external promotions.

Question 29

Krispy Kreme is an example of an overt corporate name.

Question 30

An implied corporate name contains recognizable words or word parts that suggest what the company does.

Question 31

The notion that a logo can elicit a consensual meaning among customers is known as stimulus codability.

Question 32

A conceptual corporate name seeks to capture the essence of the idea behind the brand or a vision of what the company does.

Question 33

Quality corporate logos should be easily recognizable and elicit a consensual meaning among those in the target market.

Question 34

A conceptual corporate name captures the essence of what a company offers, but does not reveal it directly.

Question 35

When Proctor & Gamble adds new laundry detergents to reach part of the market, the company has created flanker brands.

Question 36

Conceptual and implied corporate names require a greater marketing effort to ensure consumers connect the corporate name with the goods and services that are being sold.

Question 37

A family brand relationship occurs when two companies produce one brand in a cooperative venture.

Question 38

Google is an example of an implied corporate name.

Question 39

Brands are names generally assigned to individual goods or services or to sets of products in a line.

Question 40

A brand extension is the use of a new brand name to identify an old product.

Question 41

The goal of branding is to set a product apart from its competitors.

Question 42

Placing Oreo cookies in Dairy Queen milk shakes is an example of complementary branding.

Question 43

Brand equity based on financial value estimates the future cash flows of a brand based on its unique strength and characteristics, which will then be discounted to determine a net present value.

Question 44

To establish a strong brand image, a brand name must be prominently promoted in repetitious ads or it should be associated with one of the product's benefits.

Question 45

Social media does not play a role in brand building because it involves consumers interacting with each other.

Question 46

Brand metrics measure returns on branding investments.

Question 47

Brand parity is a strong weapon that might dissuade consumers from looking for a cheaper product or for special deals or incentives to purchase other brands.

Question 48

Brand equity is not as important in international markets because fewer brands are available.

Question 49

Brand equity is not as important in business-to-business markets because pricing is often the primary decision variable.

Question 50

Brand equity is a set of characteristics that are unique to a brand that make it seem different and better.

Question 51

Developing a strong brand begins with discovering why consumers buy a brand and why they rebuy the brand.

Question 52

Brand equity is the perception that most brands within a product category are relatively similar or have no distinct differences.

Question 53

A flanker brand can be introduced when company leaders think that offering the product under the current brand name may adversely affect the overall marketing program.

Question 54

Ingredient branding is the placement of one brand within another, such as NutraSweet as part of Diet Coke.

Question 55

Ingredient branding is the joint venture of two or more brands into a new good or service.

Question 56

Consumers recommend brands to their families and friends because of one or more salient attributes.

Question 57

The secret to a successful brand is discovering what influences consumers to make purchases.

Question 58

Co-branding succeeds when it builds the brand equity of both brands involved.

Question 59

A recent trend in brand building has been to incorporate social media.

Question 60

Brand parity is the perception that most brands within a product category are relatively similar or have no distinct differences.

Question 61

In international markets, an adaptation strategy reduces costs.

Question 62

Manufacturers seeking to defend against strong private label brands can respond by focusing on core brands, advertising more, or expanding product offerings.

Question 63

The revenue premium approach to estimating brand equity compares a branded product to the same product without a brand name, such as a private label brand.

Question 64

In expanding internationally, an adaptation strategy means using the same brand name and products across all countries.

Question 65

Many retailers are treating private labels more like national brands and investing more money into marketing, advertising, and in-store displays.

Question 66

The revenue premium and stock market methods of estimating brand equity attempts to measure the value of a brand based on input from consumers through measures such as familiarity, quality, purchase considerations, customer satisfaction, and willingness to seek out the brand.

Question 67

The revenue premium approach to estimate brand equity involves determining the financial value of the company through stock valuation with an estimate of the portion of the value allocated to brand equity and not physical assets.

Question 68

Although brand equity can be measured using various metrics, CEOs and other corporate leaders often want real, hard numbers.

Question 69

Buying domain names on the Internet that may be important to famous people or businesses with the idea of making money from selling the domain name to them is called domain squatting.

Question 70

Marketing surveys have revealed that only about one-third of purchases are planned prior to reaching a store, which increases the importance of a product's packaging.

Question 71

The consumer value method of estimating brand equity attempts to measure the value of a brand based on input from consumers through measures such as familiarity, quality, purchase considerations, customer satisfaction, and willingness to seek out the brand.

Question 72

Although a label on a package must meet legal requirements, it represents another opportunity to reach consumers with a marketing message.

Question 73

Private brands are proprietary brands marketed by an organization and normally distributed within the organization's outlets.

Question 74

The stock market approach to estimate brand equity involves determining the financial value of the company through stock valuation with an estimate of the portion of the value allocated to brand equity and not physical assets.

Question 75

A product's package is the final opportunity for a brand to make an impression on a consumer before a purchase is made.

Question 76

Brand infringement occurs when a company creates a brand name that closely resembles a popular or successful brand.

Question 77

Brand equity based on stock market value estimates the future cash flows of a brand based on its unique strengths that are then discounted to determine a net present value.

Question 78

In recent years, loyalty toward retail stores has been declining, while loyalty toward individual brands has been increasing.

Question 79

Packaging today needs to meet the needs of consumers for speed, convenience, and portability.

Question 80

The placement of QR codes for consumers to access with mobile devices represents a new trend in packaging and labeling.